Elon Musk wants Tesla to invest $5 billion into his newest startup, xAI — if shareholders approve

Tesla Inc News

Elon Musk wants Tesla to invest $5 billion into his newest startup, xAI — if shareholders approve
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During the Tuesday earnings call, shareholders asked Musk whether Tesla might invest in xAI and integrate xAI's software, named Grok, into its vehicles.

Tesla CEO Elon Musk posted an informal poll on social network X asking whether his publicly traded automaker should invest $5 billion into his newest startup, xAI.

Specifically, he asked: "Should Tesla invest $5B into @xAI, assuming the valuation is set by several credible outside investors? " Musk replied, "Tesla is learning quite a bit from xAI. It's been actually helpful in advancing Full Self-Driving and in building up the new Tesla data center. With regards to investing in xAI, I think we'd need to have a shareholder approval of such investment. But I'm certainly supportive of that if shareholders are.

XAI's first product, Grok, is a far cry from providing the utility of leading chatbots like OpenAI's ChatGPT, Google's Bard, Microsoft's Bing and Anthropic's Claude today. Musk has billed Grok as a politically incorrect and witty alternative to these existing offerings.

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